Form 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549


(X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2000
                               ------------------

                                       OR

(  )TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
    SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________to _________________

For Quarter Ended September 30, 2000


                              TRANSNET CORPORATION
                              --------------------
             (Exact name of registrant as specified in its charter)


    DELAWARE                                       22-1892295
    --------                                       ----------
(State or other jurisdiction of          (I.R.S. Employer Identification Number)
incorporation or organization)

45 Columbia Road, Somerville, New Jersey             08876-3576
----------------------------------------           ------------
(Address of principal executive offices)           (Zip Code)

Registrant's Telephone Number, Including Area Code:908-253-0500
                                                   ------------

------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last Report

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

    Yes    X      No _____
        -------

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of November 7, 2000: 4,855,304.




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                              TRANSNET CORPORATION

                                    FORM 10-Q

                                TABLE OF CONTENTS

                                                                     Page No.

PART I.  FINANCIAL INFORMATION

   Consolidated Balance Sheets
   September 30, 2000 and June 30, 2000                                 1

   Consolidated Statements of Operations
   Three Months Ended September 30, 2000 and 1999                       2

   Consolidated Statements of Cash Flows
   Three Months Ended September 30, 2000 and 1999                       3

   Notes to Consolidated Financial Statements                           4

   Management's Discussion and Analysis                                 5


PART II.  OTHER INFORMATION                                             8
-------   -----------------




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TRANSNET CORPORATION AND SUBSIDIARY
------------------------------------------------------------------------------


CONSOLIDATED BALANCE SHEETS
------------------------------------------------------------------------------



                                                       September 30,  June 30,
                                                       -------------  --------
                                                          2 0 0 0      2 0 0 0
                                                          -------      -------
                                                        [Unaudited]
Assets:
Current Assets:
  Cash and Cash Equivalents                             $3,858,213  $5,208,558
  Accounts Receivable - Net                              9,561,621   9,357,398
  Inventories                                            1,782,232   1,377,729
  Mortgage Receivable - Related Party                      250,000     250,000
  Other Current Assets                                     128,504      86,500
  Deferred Tax Asset                                       189,164     231,900
                                                        ----------  ----------

  Total Current Assets                                  15,769,734  16,512,085

Property and Equipment - Net                               572,771     569,000

Other Assets                                               314,715     369,282
                                                        ----------  ----------

  Total Assets                                          $16,657,220 $17,450,367
                                                        =========== ===========

Liabilities and Stockholders' Equity:
Current Liabilities:
  Accounts Payable                                      $2,328,864  $2,055,484
  Accrued Expenses                                         263,101     378,858
  Accrued Payroll                                          176,627     175,614
  Floor Plan Payable                                       966,236   2,015,285
                                                        ----------  ----------

  Total Current Liabilities                              3,734,828   4,625,241
                                                        ----------  ----------

Deferred Tax Liability                                      12,000      12,000
                                                        ----------  ----------

Stockholders' Equity:
  Capital Stock - Common, $.01 Par Value, Authorized
  15,000,000 Shares; Issued 7,469,524 Shares
  [of which 2,614,220 are in Treasury]                      74,695      74,695

  Paid-in Capital                                       10,686,745  10,686,745

  Retained Earnings                                      9,358,011   9,260,745
                                                        ----------  ----------

  Totals                                                20,119,451  20,022,185
  Less:  Treasury Stock - At Cost                       (7,209,059) (7,209,059)
                                                        ----------  ----------

  Total Stockholders' Equity                            12,910,392  12,813,126
                                                        ----------  ----------

  Total Liabilities and Stockholders' Equity            $16,657,220 $17,450,367
                                                        =========== ===========


See Notes to Consolidated Financial Statements.


                                        1

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TRANSNET CORPORATION AND SUBSIDIARY
------------------------------------------------------------------------------


CONSOLIDATED STATEMENTS OF OPERATIONS
[UNAUDITED]
------------------------------------------------------------------------------


                                                           Three months ended
                                                              September 30,
                                                          2 0 0 0      1 9 9 9
                                                          -------      -------

Revenue:
  Equipment                                             $10,150,601 $7,425,692
  Services                                               3,514,398   3,829,168
                                                        ----------  ----------

  Total Revenue                                         13,664,999  11,254,860
                                                        ----------  ----------

Cost of Revenue:
  Equipment                                              9,462,289   6,761,216
  Services                                               2,521,772   2,630,742
                                                        ----------  ----------

  Total Cost Revenue                                    11,984,061   9,391,958
                                                        ----------  ----------

  Gross Profit                                           1,680,938   1,862,902

Selling, General and Administrative Expenses             1,608,097   1,455,021
                                                        ----------  ----------

  Operating Income                                          72,841     407,881
                                                        ----------  ----------

Other Income:
  Interest Income                                           67,753      88,511
  Interest Income - Related Party                            5,672       5,672
                                                        ----------  ----------

  Total Other Income - Net                                  73,425      94,183
                                                        ----------  ----------

  Income Before Tax Expense                                146,266     502,064

Income Tax Expense                                          49,000     170,912
                                                        ----------  ----------

  Net Income                                            $   97,266  $  331,152
                                                        ==========  ==========

Basic Net Income Per Common Share                       $     0.02  $     0.07
                                                        ==========  ==========

Diluted Net Income Per Common Share                     $     0.02  $     0.07
                                                        ==========  ==========

Weighted Average Common shares Outstanding - Basic       4,855,304   5,002,163
                                                        ==========  ==========

Weighted Average Common shares Outstanding - Diluted     4,855,304   5,002,163
                                                        ==========  ==========


See Notes to Consolidated Financial Statements.


                                        2

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TRANSNET CORPORATION AND SUBSIDIARY
------------------------------------------------------------------------------


CONSOLIDATED STATEMENTS OF OPERATIONS
[UNAUDITED]
------------------------------------------------------------------------------


                                                           Three months ended
                                                              September 30,
                                                          2 0 0 0      1 9 9 9
                                                          -------      -------


Operating Activities:
  Net Income                                            $   97,266  $  331,152
                                                        ----------  ----------
  Adjustments to Reconcile Net Income to Net Cash:
   Depreciation and Amortization                            39,753      61,130
   Provision for Doubtful Accounts                          30,000      15,000
   Discounting of Deferred Charges                          52,052      50,459
   Deferred Income Taxes                                    42,736          --

Changes in Assets and Liabilities
  (Increase) Decrease in:
   Accounts Receivable                                    (234,223) (1,270,167)
   Inventory                                              (404,503)    (19,358)
   Other Current Assets                                    (42,004)    (27,787)
   Other Assets                                               (978)      2,513

  Increase (Decrease) in:
   Accounts Payable and Accrued Expenses                   158,636     310,341
   Deferred Income                                              --      60,869
                                                        ----------  ----------

  Total Adjustments                                       (358,531)   (817,000)
                                                        ----------  ----------

Net Cash - Operating Activities                           (261,265)   (485,848)
                                                        ----------  ----------

Investing Activities:
  Capital Expenditures                                     (40,031)         --
                                                        ----------  ----------

Financing Activities:
  Floor Plan Payable-Net                                (1,049,049)   (364,358)
  Treasury Shares Repurchased                                   --    (372,875)
                                                        ----------  ----------

  Net Cash - Financing Activities                       (1,049,049)   (737,233)
                                                        ----------  ----------

  Net (Decrease) Increase in Cash and Cash Equivalents  (1,350,345) (1,223,081)

Cash and Cash Equivalents - Beginning of Periods         5,208,558   7,617,241
                                                        ----------  ----------

  Cash and Cash Equivalents - End of Periods            $3,858,213  $6,394,160
                                                        ==========  ==========

Supplemental Disclosures of Cash Flow Information:
  Cash paid during the periods for:
   Interest                                             $       --  $       --
   Income Taxes                                         $    6,265  $  341,027

Supplemental Disclosure of Non-Cash Investing Activities:


See Notes to Consolidated Financial Statements.


                                        3

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TRANSNET CORPORATION AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Information as of September 30, 2000 and 1999 is unaudited)
------------------------------------------------------------------------------



(1)Summary of Significant Accounting Policies

(a) Consolidation: The consolidated financial statements include the accounts of
the Corporation and its wholly owned subsidiary,  Century American  Corporation.
Intercompany transactions and accounts have been eliminated in consolidation.

(b) Inventory: Inventory consists of finished goods. The Corporation's inventory
is valued at the lower of cost (determined on the average cost basis) or market.

(c) Cash and Cash Equivalents:  For the purposes of the statement of cash flows,
the  Corporation  considers  highly liquid debt  instruments,  purchased  with a
maturity of three months or less, to be cash equivalents.

(d) Earnings Per Share - Basic and Diluted:  Earnings per common share are based
on 4,855,304 weighted shares outstanding for the period ended September 30, 2000
and on 5,002,163  weighted shares outstanding for the period ended September 30,
1999.

(2) Income Taxes

The  Corporation  has a  deferred  tax  asset of  approximately  $189,000  and a
deferred  tax  liability  of $12,000  based upon  temporary  timing  differences
including inventory  capitalization,  allowance for doubtful accounts,  vacation
pay accruals and depreciation.

(3)Basis of Reporting

Certain items from the prior year's financial  statements have been reclassified
to conform to the current year's presentation.

In the opinion of management,  the accompanying unaudited consolidated financial
statements  contain  all  adjustments,   consisting  only  of  normal  recurring
adjustments,  necessary to present fairly the financial position, the results of
operations and cash flows for the periods presented.

These  statements  should be read in conjunction with the summary of significant
accounting  policies and notes contained in the  Corporation's  annual report on
Form 10-K for the year ended June 30, 2000.  The results of  operations  for the
three months ended  September  30, 2000 are not  necessarily  indicative  of the
results for the entire fiscal year ending June 30, 2001.



                                        4

<PAGE>




                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations

Revenues for the quarter ended  September 30, 2000 were  $13,664,999 as compared
with $11,254,860 for the quarter ended September 30, 1999. For the quarter ended
September  30, 2000 the  Corporation  reported net income of $97,266 as compared
with net income of $331,152 for the  corresponding  period in 1999. The increase
in  revenues  is  primarily  due to an  increase  in  hardware  sales.  Revenues
attributable  to service,  support and training  operations  decreased  slightly
compared  to the same  period in the prior  year due to  termination  of certain
projects.  Revenues for the quarter ended  September 30, 2000 include a seasonal
increase in the sale of hardware  and  technical  support  services to state and
local government and educational institutions in the tri-state area.

The  decrease  in  earnings  for  the  quarter  ended   September  30,  2000  is
attributable  to the  decrease in gross  profit  margins on  hardware  sales and
technical  services,  which in turn is due to competitive  pressures for reduced
prices for both equipment and services.  Management  concentrates  it efforts on
technical service and support, and training operations,  and on sales of network
and system integration products which yield higher profit margins, and continues
its  adherence  to and  implementation  of cost  control  measures.  Service and
training  related  revenues are significant in their  contributions  to earnings
because these  operations  yield a higher profit margin than equipment sales. In
addition to the technical  service sales referenced above, for the quarter ended
September  30,  1999,  the increase in revenues  from the  provision of service,
support,  outsourcing  and  network  integration  is  largely  the result of the
Corporation  renewing  and/or  entering into service  contracts with a number of
large  corporate  customers.  Most of these  contracts are  short-term,  usually
twelve months or less, and contain  provisions  which permit early  termination.
Although the contracts  generally  contain renewal terms,  there is no assurance
that such renewals will occur.

During the fiscal years discussed, the computer industry has experienced a trend
of decreasing  prices of computers and related  equipment.  Management  believes
that this trend will  continue.  Industrywide,  the result of price  erosion has
been lower profit margins on sales,  which require  businesses to sell a greater
volume of equipment to maintain past earning levels. Another result of the price
decreases has been intensified  competition  within the industry,  including the
consolidation  of businesses  through merger or  acquisition,  the initiation of
sales by certain  manufacturers  directly to the  end-user  and the  entrance of
manufacturers  into technical services  business.  Management  believes that the
adoption of policies by many larger corporate customers,  which limit the number
of vendors  permitted to provide  goods and services  for  specified  periods of
time, has further increased price competition.

The Corporation's  performance is also impacted by other factors,  many of which
are not within its control.  These factors  include:  the  short-term  nature of
client's  commitments;  patterns of capital spending by clients;  the timing and
size of new projects;  pricing changes in response to competitive  factors;  the
availability  and related  costs of qualified  technical  personnel;  timing and
customer  acceptance  of  new  product  and  service  offerings;  trends  in  IT
outsourcing; product constraints; and industry and general economic conditions.


                                        5

<PAGE>





To meet these competitive  challenges and to maximize the  Corporation's  profit
margin,  management has modified its marketing  strategy  during these years and
has  enforced  expense  controls.  Management  also  utilizes new trends such as
manufacturers'  direct  shipment  and billing of the  customers  in exchange for
payment to the  Corporation  of an "agency  fee" as a means to reduce  equipment
related costs while increasing profits.  Management's current marketing strategy
is designed to shift its focus to provision  of technical  services and to sales
of lower  revenue/higher  profit margin products  related to service and support
operations.  Management's efforts include targeting commercial,  educational and
governmental customers who provide marketplaces for a wide range of products and
services at one time, a cost- effective approach to sales. These customers often
do not have their own technical  staffs and  outsource  their  computer  service
requirements  to companies  such as TransNet.  Management  believes it maximizes
profits through concentration on sales of value-added applications; promotion of
the Corporation's  service and support operations;  and strict adherence to cost
cutting controls. In light of the above, management emphasizes and continues the
aggressive  pursuit of an  increased  volume of sales of  technical  service and
support programs,  and promotion of its training services. In the near term, the
Corporation  believes that product sales will continue to generate a significant
percentage of the Company's  revenues.  In addition,  the  Corporation's  buying
agreement with Ingram Micro, Inc.  enhances the  Corporation's  competitive edge
through product discounts unavailable through other sources.

Although actual expenses  increased due to increased  personnel costs,  selling,
general and  administrative  expenses  decreased to approximately 12% of revenue
for the first  quarter of fiscal 2001 as a result of the  increase in  revenues.
Selling,  general and administrative expenses were approximately 13% of revenues
for the same quarter in fiscal 2000.

Interest income  decreased in the 2000 quarter as compared to 1999 primarily due
to the lower amount of cash invested.

Liquidity and Capital Resources

There are no material commitments of the Corporation's capital resources.

The  Corporation  currently  finances a portion of its accounts  receivable  and
finances   purchases  of  portions  of  its  inventory  through   floor-planning
arrangements  under which such inventory secures the amount  outstanding.  Floor
planning  payables  decreased in the 2000 period  compared to the same period in
1999 as the result of payment made by the  Corporation.  Inventory  increased in
the quarter ended September 30, 2000 as compared to the corresponding  period in
1999 in response to the increased hardware sales.

Accounts  receivable and payable  increased for the quarter ended  September 30,
2000 as compared to the same period in 1999 as a direct  result of the  increase
in revenues.  Cash levels decreased in the three months ended September 30, 2000
as compared to the corresponding period in 1999 as a result of expenses required
to increase inventories to cover the increased hardware sales.

For the fiscal quarter ended  September 30, 2000, as in the fiscal quarter ended
September 30, 1999, the internal resources of the Corporation were sufficient to
enable the Corporation to meet its obligations.

In the first  quarter of fiscal 1998,  management  was apprised of an unasserted
possible claim or assessment involving the Corporation's  Pension Plan. The Plan
was adopted in 1981 as a defined  benefit  plan. In 1989,  various  actions were
taken by the  Corporation  to  terminate  the Plan,  to  convert it to a defined
contribution plan and to freeze benefit accruals. No filing for plan termination
was  made  with  the  Pension  Benefit   Guaranty   Corporation   (the  "PBGC").
Additionally,  a final  amended and restated  plan  document  incorporating  the
foregoing  amendments and other required amendments  including those required by
the Tax  Reform  Act of 1986 do not  appear to have been  properly  adopted.  In
addition, since 1989, it appears that certain operational violations occurred in
the  administration  of the Plan including the failure to obtain spousal consent
in certain instances where it was required.


                                        6

<PAGE>






The  Corporation  decided to (i) take  corrective  action  under the IRS Walk-in
Closing  Agreement Program ("CAP"),  (ii) applied for a favorable  determination
letter with respect to the Plan from the IRS, and (iii)  terminate the Plan. The
CAP program  provides a  correction  mechanism  for  "non-amenders"  such as the
Corporation.  Under CAP, the Corporation will be subject to a monetary  sanction
(which  could range from $1,000 to  approximately  $40,000).  In  addition,  the
Corporation will be required to correct, retroactively,  operational violations,
and to pay any resulting  excise taxes and PBGC premiums and penalties  that may
be due.  Special counsel has advised the  Corporation  that although it believes
that the Corporation will incur some liability in connection with the correction
of such  operational  violations,  any  estimate in dollar terms of the range of
such liability at this time would be  speculative  and  potentially  misleading.
However,  management has been advised by counsel that the estimated  liabilities
are significantly lower than originally anticipated.

The matters  discussed in  Management's  Discussion  and Analysis and throughout
this report that are forward-looking  statements are based on current management
expectations   that  involve  risk  and   uncertainties.   Potential  risks  and
uncertainties  include,  without  limitation:  the impact of economic conditions
generally  and  in  the  industry  for  microcomputer   products  and  services;
dependence  on key  vendors and  customers;  continued  competitive  and pricing
pressures in the industry;  product supply shortages;  open-sourcing of products
of vendors,  including direct sales by manufacturers;  rapid product improvement
and technological  change, short product life cycles and resulting  obsolescence
risks; technological developments; capital and financing availability; and other
risks set forth herein.


                                        7

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                                    PART II.
                                OTHER INFORMATION



Item 6:  Exhibits and Reports on Form 8-K

  A.  Exhibits - None required to be filed for Part II of this report.

  B.  Reports on Form 8-K - None filed during the quarter for which this report
      is submitted.



                                        8

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                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                      TRANSNET CORPORATION
                                      (Registrant)



                                      /s/ Steven J. Wilk
                                      ------------------
                                      Steven J. Wilk, President




                                      /s/ John J. Wilk
                                      ----------------
                                      John J. Wilk,
                                      Principal Financial and Accounting Officer
                                      and Chairman of the Board of Directors


DATE:  November 14, 2000


                                        9

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